Gold Prices Surge Amidst Heightened Safe-Haven Demand
Gold is on track to secure its eighth consecutive weekly gain in global markets, driven by escalating concerns related to U.S. economic policies under President Donald Trump. As uncertainty grows regarding potential new tariffs, demand for gold as a safe-haven investment continues to strengthen.
On Friday, the price of instant gold reached $2,940.32 per ounce, reflecting a notable increase of approximately 2% this week. The commodity even touched a record high of $2,954.69 in the previous session.
Market analysts have expressed mixed views on the outlook for gold, indicating that while the current strength is apparent, a short-term decline could be on the horizon.
In the past week, President Trump announced intentions to disclose new tariff definitions next month or sooner, expanding his existing plan to encompass wood and forest products, alongside previously identified categories such as imported cars, semiconductors, and pharmaceuticals.
Since taking office on January 20, Trump has already imposed a 10% additional tariff on Chinese imports, along with a 25% tariff on steel and aluminum. These moves have heightened inflationary concerns, negatively impacting perceptions of economic growth.
Federal Reserve officials have voiced apprehensions regarding the inflationary risks associated with Trump’s trade policies and their implications for the economy.
Adriana Kogler, a Federal Reserve official, indicated on Thursday, "In the next stage, I see it appropriate to maintain the federal interest rate at its current level for a period due to the balance of the risks we are currently facing."
Overall, the interplay between gold prices, tariffs, and inflation continues to shape the economic landscape, signaling potential challenges ahead for both investors and policymakers.
